- -L. h

Hon. C. Woodrow Laughlin County Attorney Jim Wells County Alice, Texas Dear Sir: Opinion No. O-5491 Re: Ifreal property conveyed to the State of Texas ata tax sale, is sold toan individual, would the purchaser be required to pay any State, county and school taxes that were delinquent at the time of the judgment?
We have your letter requesting an opinion by this department. The letter is as follows:

“In 1932. the Sheriff of Jim Wells County conveyed to the State ofTexas certain property at atax sale, as there were no bidders that would bid a sufficient amount for said property. Subsequent to this time, this property has been assessed against the State of Texas onthe Tax Rolls of Jim Wells County.

“Inow propose to sell said property as provided by Article 7345b. Seetion9, Revised Civil Statutes of Texas, and Iwould like to have your opinion upon the following questions, towit:

“(1) Ifthis property is sold toan individual, would he be required to pay any State, County and school taxes that were delinquent at the time ofthe judgment in 1932?

“(2) Would this purchaser be required to pay any taxes that have accrued onthis property since it has been dwded to the state 7

“(3) Would the purchaser be required to pay anything else besides the amount bid at the Sheriffus Sale ?Hon. C. Woodrow Laughlin, page 2 (0-5491)

“‘Article 7345b. Section 9, Revised Civil Statutes ofTexas, provides in part as follows: ‘Ifthe property be sold to any taxing unit which is aparty tothe judgment under decree of court in said suit, the title to said property shall be bid inand held by the taxing unit purchasing same for the use and benefit ofitself and all other taxing units which are parties to the suit and which have been adjudged in said suit to have tax liens against such property, pro rata and in proportion to the amount ofthe tax liens infavor ofsaid respective taxing units as established by the judgment in said suit, * 4:*.’

“Article 7345b, Section 10, Revised Civil Statutes of Texas, provides in part as follows: “The purchaser of property sold for taxes in such foreclosure suit shall take title free and clear ofall liens and claims for ad **valorem** taxes against such property delinquent at the time ofjudgment in said suit to any taxing unit which was aparty to said suit, or which had been served with citation in said suit as required by this Act. * * 4:’

“In view ofthe above and foregoing authorities, it is the opinion ofthis department that all ofthe questions asked should be answered inthe negative. Inother words, where property is sold as provided by Article 7345b, Section 9, the purchaser receives title free and clear from any liens for taxes whatsoever, and is not required to pay any taxes until the year following.’

We note that inyour letter you state the land in question was conveyed to the State by the Sheriff of Jim Wells County at atax sale in 1932. The copy ofthe deed in question, which you sent us in response to our request for additional information, appears tobe dated the 3rd day d September, 1931. and tohave been acknowledged by the sheriff onthe 22nd day ofOctober, 1931. The copy ofthe judgment rendered inthe case shows the judgment to have been granted onthe 18th day of February, 1931.

Article 7345b. V.A.C.S. of Texas, was enacted in 1935 by the 44th Legislature. Sections 2. 5. and 10of said article were amended in 1941 byActs ofthe 45th Legislature. Inour opinion No. o-5506 (a copy ofwhich is enclosed for your information) we held that when atax sale has been had in full compliance with the terms of said Article 7345b. the purchaser ofthe property so sold for taxes in such foreclosure suit. takes the title thereto free and clear ofall liens and claims for ad valorem taxes against the property delinquent at the time ofthe judgment in the said suit as against any taxing unit which was aparty to the suit, or which had been served with citation inthe suit, as required by said Article 7345b. Insaid opinion we further held that inany case, where at the time ofthe judgment referred to there were any unpaid assessments for maintenance and operation purposes ona pro rata per acre basis against_-

. ~. I

Hon. C. Woodrow Laughlin, page 3 (O-5491)

any irrigable land authorized by law tobe made for water improvement districts, or water control and improvement districts, the collection of said assessments ‘or the liens securing the same would not be prejudiced by said judgment.

But itis obvious that the provisions ofsaid Article 7345b are not applicable to the judgment inquired about by you, for the reason that said article was not inforce at the time said judgment was obtained. Itis elementary that ajudgment is only binding onthose who are parties to the suit inwhich the judgment was rendered. Insomuch as an inspection ofthe copy ofthejudgment which you sent us discloses that no taxing units other than the State and county were parties to the suit in question, you are advised that any taxing unit other than the State and county would not be bound by said judgment; their rights would not be affected thereby, and any tax liens subsisting intheir favor at the time ofthe judgment would not be extinguished by the force ofsaid judgment.

Article 7336f, Sec. 1,was enacted in 1935 by the 44th Legislature, and is as follows:

‘The collection ofall delinquent, ad valorem taxes due the State, county, municipality or other defined subdi; visions that were delinquent prior to Dec. 31. 1919, is forever barred.”

By reason ofthe foregoing quoted statute, we need to consider inthis opinion only the effect ofthe instant judgment on such taxes as have become delinquent since Dec. 31, 1919. as the collection ofthose which became delinquent before that date is “forever barred.*

Writing upon the quality oftitle acquired by apurchaser at atax foreclosure sale, Texas Jurisprudence has this to say:

“‘Referring to the title acquired by purchaser at a tax foreclosure sale, the statutes provide, that when the land has been paid for, the sheriff shall execute adeed

‘.cnmm*eg title ‘, and~~that “such;deed shall be held inany **court** of law DFequity in this State to vest good and perfect title in the purchaser thereof, subject tobe impeached only for actual fraud.’ Therefore, and seeing that the foreclosure proceeding is asuit in rem. it has been held that ifall parties having an interest inthe land were joined as defendants an estate infee simple passes to the purchaser free from any lien for taxes for the taxing years prior to those for which foreclosure was decreed, inthe absence ofany reservation ofsuch lien in the judgment offoreclosure - subject, however, tothe rights ofany persons who had some interest and therefore should have been impleaded as parties inthe tax foreclosure suit.m (40 Tex. Jur. 307-308, Section 229. citing Ball v. Carroll, 92 SW. 1023,. .
Hon. C. Woodrow Laughlin, page 4 (O-5491)

error refused; State Mortgage Corp. v. State, 9S.W. (2d) 271. judgment reformed, Commission ofAppeals, 17 SW. (2d) 801; State v. Lile, Civ. App., 212 S. W. 517; Ivey v. Peichman, Civ. App., 201 S. W. 695; error dismissed; City ofHouston v. Barkley. Civ. App., 68 S.W. 730. error refused)
We understand our Commission ofAppeals to hold inthe case of State Mortgage Corp. v. State, 17S.W. (2d) 801. (cited above) that each annual assessment oftaxes evidences a “special lien” onthe land onwhich the assessment was made; that this special lien by force ofthe statutes continues inexistence until the lien liability “shall be paid.” That the statutory provisions to the effect that the special lien continues in existence until the tax liability shall be paid. is modified by the effect ofthat merger oflien and title which occurs when the State itself finally takes the land in payment oftaxes for a particular year.

Applying this doctrine to the case you inquire about, we have this situation:

(a) The State reduced the State and county delinquent taxes for the year 1928 tojudgment, and

(b) did not sue for any State and county taxes for any year other than 1928.

(c) The State bought said land for said taxes, and (d) has held same until the time for exercising the equity ofredemption has expired.

The result is - (a) The State now owns said land (See Booty et al. v. State, 149 S.W. (2d) 216) and has the legal title thereto.

(b) The State’s lien for any taxes due itand delinquent at the time ofthe judgment, but not sued for, has now merged with the State’s said title; and(c) A sale now ofthe State’s title would pass atitle to the purchaser which would be free ofall tax liens existing against said property for delinquent State and county taxes, at the time ofthe judgment’s rendition. There is,no provision of Texas law whereby land belonging tothe State, purchased by it at atax sale, may be taxed while so belonging to the State. You are therefore advised that notaxes infavor ofanyHon. C. Woodrow Laughlin, page 5 (O-5491)

taxing unit have legally accrued against the land inquestion subsequent to its purchase by the State. Approved Nov. 3. 1943 /s/ Grover Sellers First Assistant Attorney General Very truly yours ATTORNEY GENERAL OF TEXAS

By /s/ George P. Blackburn George P. Blackburn

Assistant GPB:AMM/cm ENCLOSURE

APPROVED Opinion Committee
**BY /s/AW**  

### Chalrman